Intel at IDF, San Jose, disclosed plans to convert Fab 12, a 200mm wafer fabrication facility located in Chandler, Arizona, to a 300mm wafer fab. The conversion project, estimated to cost $2 billion, will begin in the first half of 2004 with production scheduled to begin in late 2005. The converted fab will be Intel’s fifth fab to start up production on 65nm process technology.

Intel currently has two 300mm fabs in operation; one in Hillsboro, Oregon, the second in Rio Rancho, New Mexico. Two other 300mm facilities are under construction. One in Oregon will begin operations later this year, and a facility currently under construction in Ireland is scheduled to begin operations in the first half of 2004.

Manufacturing with 300mm wafers dramatically increases the ability to produce semiconductors at a lower cost compared with the current standard 200mm wafers. The total silicon surface area of a 300mm wafer is 225% that of a 200mm wafer, and the number of printed die (individual computer chips) is increased to 240%. The bigger wafers lower the production cost per chip while diminishing overall use of resources. 300mm wafer manufacturing will use 40% less energy and water per chip than a 200mm wafer factory. On the other hand, the factory itself as well as 300mm wafers cost giant sums. According to analysts, a company that invests in 300mm fabs should be 100% sure in their full utilisation as well as in high average selling prices. It seems that Intel is really confident at the moment.

Separately, the company disclosed plans to sell 524 acres of land in Forth Worth, Texas. The land was purchased in 1997 as part of a planned manufacturing facility. However, changes in manufacturing technology and current construction projects at existing Intel sites mean the property is no longer part of the company's future plans. Therefore, we should expect Intel to upgrade the current facilities rather than building new fabs [in the USA?], as this strategy seems to be more reasonable in the current economic conditions.